What is the pa dept of revenue definition of Construction Contract and Construction Contractor?
Answer From their website: A construction contractor is required to pay Sales or Use Tax on all taxable services, equipment, materials, supplies, and/or components used or installed so as to become part of the real estate. The tax is based upon the contractors purchase price including delivery charges paid to the supplier. The contractor does not charge Sales Tax on either the construction materials or labor to install the materials. Although the contractor may recoup the cost of Sales Tax paid on its purchase of materials or taxable services, the Sales Tax paid by the contractor should not be separately stated on the invoice to the contractor’s customer. A construction contractor may purchase certain items exempt from Sales Tax that it transfers to a government agency or certain tax-exempt organizations that qualify as institutions of purely public charity. These items are called “building machinery and equipment. Building machinery and equipment are defined as generation equipment, s
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